The impact of remittances on household investment in Nigeria
Article Metrics Report
Views, downloads, citations, engagementCited by
Current citation countResearch summary
Remittances are monetary and non-monetary items that migrants send to members of their respective families and communities in their countries of origin. Several studies have argued that remittances rarely fund productive investment while others argued otherwise. Previous studies have focused on the impact of the aggregate remittances on households’ investment without considering the roles of the different types of remittances like aggregate, cash, food and other remittances on households’ investment in Nigeria. This study was therefore designed to analyse the impact of the various types of remittances on households’ investment in the rural areas, urban areas and in the geo-political zones of Nigeria. Data were obtained from the Harmonised Nigerian Living Standard Survey of 2009/2010. The study was premised on the Investment Theory. The Ordinary Least Squares (OLS) technique was used in estimating the model and probit regression was used as robustness check of the OLS estimate. Instrumental variable test was used to verify the existence of endogeneity in the model. The impacts of the aggregate, cash, food and other remittances on households’ investments are chequered in the rural areas, urban areas and in the geo-political zones of Nigeria.
Article History
How to Cite
Abubakar, O. I. & Folawewo, A.. (2019). The impact of remittances on household investment in Nigeria. International Journal of Business and Economic Development, Volume 07 Issue 02.
Citation Context
APA
Abubakar, O. I. & Folawewo, A.. (2019). The impact of remittances on household investment in Nigeria. International Journal of Business and Economic Development, Volume 07 Issue 02.
MLA
Abubakar, Ohiomoje Iyemifokhae, and Abiodun Folawewo. "The impact of remittances on household investment in Nigeria." International Journal of Business and Economic Development, Volume 07 Issue 02, 2019.
Chicago
Ohiomoje Iyemifokhae Abubakar and Abiodun Folawewo. "The impact of remittances on household investment in Nigeria." International Journal of Business and Economic Development Volume 07 Issue 02 (23 Oct 2019).
Harvard
Abubakar, O. I. & Folawewo, A. (2019) The impact of remittances on household investment in Nigeria. International Journal of Business and Economic Development, Volume 07 Issue 02
References
- Adams, R. H. 1991. The Effects of International Remittances on Poverty, Inequality and Development in Rural Egypt. Washington D.C., Page 14-23.
- Adams, R. and Page, J. 2005. “Do International Migration and Remittances Reduce Poverty in Developing Countries?” World Development, 33 (10): 1645 1669.
- Ballard, R. 2003. “A case of capital-rich under-development: The paradoxical consequencies of successful transnational entrepreneurship from Mirpur” in Osella and Gardner (eds) Migration, Modernity and Social Transformation in South Asia, New Delhi, Sage Publications.
- Beijer, G. 1970. International and National Migratory Movements. International Migration 8.3: 93-109.
- Bracking, S. (2003). Sending Money Home: Are Remittances always beneficial to those who stay behind? Journal of International Development, 15 (): 633-644.
- Campbell, J. and Mankiw, G. 1989. Consumption, Income and Interest Rate: Re-interpreting the time series evidence. Page 185 246.
- Carling, J. 2004. Policy option for increasing the benefits of remittances, Working Paper 8, Centre for Migration, Policy and Society (Compas), University of Oxford, United Kingdom, London.
- Cuong, N. V. (2009). The Impact of International and Internal Remittances on Households’ Welfare: Evidence from Vietnam. Asian-Pacific Development Journal, 16 (1):
- de Haas, H. 2005. International Migration, Remittances and Development: Myths and Facts. Third World quarterly, 2 (8): 1269 1284.
- de Haas, H. 2006. Migration, Remittances and Regional Development. Southern Morocco, Geoforum, 37 (): 565-580.
- Dharkal, S. (2012). International Remittances Households’ Expenditures and Savings: Evidence from Nepal. Master Thesis of Department of UMB, School of Economics and Business, University of Norwegian Life Sciences.
- Entzinger, H. 1985. Return Migrants in Western Europe: Current Policy Trends and their Implications in particular for the Second Generation. International Migration 23.2: 263-290.
- Etowa, E. B. (2015). Effects of Migrant Remittances on Farm Households’ Welfare in Nigeria. Department of Agricultural Economics, University of Nigeria, Nsukka.
- Gounder, N. 2012. The determinant of household consumption and Poverty in Fiji. Griffith University.
- Heckman, J. 1979. Sample Selection Bias as a Specification Error. Econometrica, 47 (1): 153-161.
- HNLSS 2009/2010: Harmonised Nigerian Living Standard Survey (HNLSS).
- Levitt, P. (2001). Transnational Migration: Taking stock and future direction. Global Networks, 1 (3): 195-216.
- Lieten, G. and Nieuwenhuys, O. 1989. Introduction: Survival and Emancipation. In G.K. Lieten, Olga Nieuwenhuys and Loes Schenk-Sandbergen. Eds. Women Migrants and Tribal: Survival Strategy in Asia. Manohar, New Delhi, page 8.
- Lipton, M. 1980. Migrants from the rural areas of poor countries: The impact on rural productivity and income distribution. World Development 8.1: 1 24.
- Lucas, R. and Stark, O. 1985. Motivation to Remit: Evidence from Botswana. Journal of political economy, 93 (5): 901 918.
- Mukherjee, S. and Benson, T. 2003. The Determinants of Poverty in Malawi. 1998 World Development, vol. 3 (2): 339 358.
- National Bureau of Statistics 2004. Nigerian Living Standards and Measurement Surveys. NBS: Abuja, Nigeria.
- NBS 2010: Nigeria Poverty Profile.
- Poirine, B. 1997. A theory of remittances as an implicit family loan arrangement. World Bank Development, 25 (4): 89 611.
- Rajan, G. and Subramanian, A. 2005. What Undermines Aid’s Impact on Growth? IMF Working Paper 05/126: Washington D.C.
- Ratha, D. 2003. Worker’s remittances: An important and stable source of external development finance. Global development finance: 157 172, World Bank.
- Ratha, D. and Mohapatra (2007). Increasing the Macroeconomic Impact of Remittances on Development. Development Prospects Group, the World Bank, Washington D.C. 20433.
- Ratha, D. and Plaza, S. 2016. Trends in Remittances, 2016: A New Normal of Slow Growth.
- Robinson, R. (2004). Globalisation, Immigrants’ transnational Agency and Economic Development in their homeland, Policy Paper, Canadian Foundation for the Americas.
- Sander, C. 2003. Migrant Remittances to Developing Countries. Paper presented for DFID, Bannock Consulting.
- Skeldon, R. 1997. Migration and Development: A Global Perspective. Essex: Longman.
- Stark, Oded and Bloom, David 1985. The New Economics of Labour Migration. AEA Papers and Proceedings. Frontiers in Demographic Economies. 75 (2): 1 6.
- Taylor, J. E. and Martin, P. L. (2001). Human Capital: Migration and Rural Population change. In Bruce L. Gardner and Gordon C. Rausser (eds), Handbook of Agricultural Economics, Volume 1A: 457-511, Amstadam Elsvier Science, North Holland, 2001.
- Todaro, M. 1969. A model of Labour Migration and Urban Development in Less Developed Countries. American Economic Review 59.1: 138 148.
- Van Dalen, H., Groenewold, G. and Fokkema, T. 2005. The Effect of Remittances on Emigration Intentions in Egypt, Morocco and Turkey. Population Studies 59.3: 375-382.
- Van Hear, N. and Sorensen, N. (2003) (Eds). The Migration Development Nexus. Geneva: The United Nations and International Organisation for migration.
- Vu and Baulch, 2011. Assessing Alternative Poverty Proxy Methods in Rural Vietnam. Oxford University Studies, 39 (3): 339-367.
- World Bank, 2016. Migration and Remittances: Recent Development and Outlooks.
- Yang, D. (2006). International Migration, Remittances and Households’ Investments: Evidence from Phillipine Migrants’ Exchange Rate Shocks. Working Paper 12325.
- Zhu, Y.; Wu, Z.; Wang, M.; Du, Y. and Cai, F. (2008). Do Migrants really save more? Understanding the Impact of Remittances on Savings in Rural China. Paper presented at the Chinese Academy of Social Science.